|July 21, 2009|
Silver Spruce Options Gold Prospect -- Bay D'espoir Area Southern Newfoundland
- New gold prospect in outcrop over an area of 300 m by 60 m, open in all directions
- Values to 1.3 g/t gold in highly sheared, arsenopyrite bearing metasediments
- up to 11.4 g/t gold from stockwork quartz veins in the auriferous sediments
- Large tonnage, bulk mining potential
July 21, 2009 - Bridgewater, NS - Silver Spruce Resources Inc. (TSXV: SSE) reports that it has optioned the Lazyman gold property located in the Bay D' Espoir Area of southern Newfoundland where gold mineralization was discovered in the summer of 2009. There is no recorded exploration work on the property which hosts structurally related gold mineralization in altered / sheared metasediments and stockwork quartz veins. The property, which totals 114 claims (2,850 ha), was optioned from prospectors Alex Turpin and Colin Kendell. The terms of the option, summarized below, are subject to TSX-V acceptance.
The terms to earn a 100 % interest in the property, subject to a 2.5 % NSR with a 1.5% buyback for $2.0M, are:
In addition, a yearly advance royalty payment, deducted from future NSR payments, of $20,000 per year, is payable from the 4th anniversary on.
The property is located near the Head of Bay D'Espoir on the south coast of Newfoundland, approximately 20 kilometres to the northeast of the village of Milltown. It is accessible via ATV trails which extend from the Bay D'Espoir highway.
The host rocks for the mineralization are the Baie d' Espoir Group (BEG), mainly siliciclastic marine sediments and locally minor intermediate and felsic volcanics, of Cambro -- Ordovician age. The only known work on the property is prospecting carried out by the vendors in the spring of 2009, followed by a site visit by SSE in June. Statistical results for the prospectors and due diligence sampling are summarized in Table 1. A total of 37 rock samples were taken from outcrops of either arsenopyrite bearing sheared sediments and/or quartz veins, 36 from the Lazyman Showing and a single sample from an outcrop 2 kilometres to the west. Thirty one (31) samples contain > 0.1 g/t gold, with 18 > 0.5 g/t and 10 > 1 g/t gold. The remaining 6 samples gave < 0.1 g/t gold.
Results ( gold in ppb) for rock samples collected from Lazyman Showing
||Low grade zones sampled by GMG
||Higher grade vein and sheared metasediment sampled by CK/AT
The gold mineralization occurs in sheared, arsenopyrite bearing, sedimentary units and in stockwork quartz veins exposed in outcrop over an area of approximately 300 meters by 60 meters. The showing is surrounded by bog and is open in all directions. Values vary from background (100 ppb or less) to 11.4 g/t gold. The property has the potential to host a large tonnage, low grade gold deposit similar to the Touquoy Deposit, in the Meguma Group of Nova Scotia, (13.2 million tonnes grading 1.5 g/t gold) presently being prepared for production by Atlantic Gold.
Fifteen due diligence samples taken by SSE's Senior Geologist, Guy Mac Gillivray gave Au values from 5 to 1309 ppb with all samples taken from areas away from the higher grade quartz veining. The results confirm the that the host sedimentary units are auriferous and therefore the potential for a significant gold deposit in the area.
Exploration, to begin immediately will consist of detailed prospecting over the entire claim block in conjunction with soil geochemistry. The mineralization at the Lazyman Showing will also be systematically channel sampled. Trenching / Diamond drilling is contingent on positive results from the initial surveys.
Analyses were carried out at Accurassay Laboratories in Thunder Bay, ON after sample preparation at the Gambo, NL preparation facility. Samples were analysed for gold by fire assay using an atomic absorption finish plus an ICP-31 technique for other elements. A compilation map of the property can be viewed on the company website www.silverspruceresources.com.
ABOUT SILVER SPRUCE
Silver Spruce is a junior exploration company originally focused on uranium in the Central Mineral Belt (CMB) and elsewhere in Labrador, Canada. With interests in more than 8,000 claims totaling more than 2,000 square kilometers in Labrador, Silver Spruce is the second largest landholder in one of the world's premier emerging uranium districts. The company also has gold/silver projects in Mexico and the island of Newfoundland, and base metal projects in central and western Newfoundland making Silver Spruce a leading explorer in Canada and Mexico.
This release has been approved by Guy Mac Gillivray, P.Geo., Senior Geologist, for Silver Spruce Resources Inc., who is a Qualified Person (QP) as defined in National Instrument 43-101.
For Further Information Contact:
SILVER SPRUCE RESOURCES
Gordon Barnhill, CFO & Director
Hugh Oswald, Ascenta Capital Partners Inc.
Phone: 604.684.4743 ext. 243
Toll Free: 1.866.684.4743 ext. 243
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Corporation seeks Safe Harbour.
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